Charts of the Week - A Visual Summary of China's Latest Happenings

Insights on Manufacturing, Infrastructure, Consumption, Jobs, Real Estate, and Luckin

Charts of the Week is BAiGUAN's series on (usually no more than five) key data points that we think you should pay attention to, handpicked by our team. Whether you are on your daily commute or waiting for the elevator, our goal is to help you have a grasp of the general state of affairs in China in under 2 minutes.

Coming out of the anti-Covid measures and Chinese New Year, China has undergone a range of economic and social changes that have significant implications for businesses, investors, and citizens alike. From shifts in consumer spending patterns to changes in business activities, our charts this week will provide an insightful glimpse into what's actually happening on the ground in China.

Excavator Index: industrial sector recovery pace picks up post Chinese New Year

*Credit: chart quoted from https://m.thepaper.cn/newsDetail_forward_22123756

The "Excavator Index" suggests that China's infrastructure is recovering in an orderly manner after the Chinese New Year. Overall activity has not returned to the levels previously seen in 2021 and 2022. However, the resumption of work has been accelerating.

This index is published by Sany Heavy Industry (600031.SH) and is composed of data on the operating rate and average operating time of five categories of equipment, including excavating equipment (excavators), road equipment (road rollers, etc.), concrete equipment (mixing stations, concrete mixers, etc.), lifting equipment (cranes, etc.) The Excavator Index reflects the overall level of activity in the Chinese construction industry.

Truckload Traffic Index shows healthy recovery in nationwide business activities

The truckload traffic index, published by G7, a leading IoT SaaS provider for manufacturing and consumer logistics, measures the level of activity in vehicle traffic, freight hubs, and throughput in all provinces of Mainland China. (The calculation is based on the average weekly value of 2019: the truckload traffic index = the number of truckload tasks in the current week / the average weekly number of tasks in 2019 x 100.)

The index jumped 248.9% week-on-week during the first week after Chinese New Year, marking the quickest return since the 2021 Chinese New Year. The overall traffic activity has not yet returned to levels seen in 2021 and 2022, in line with the Excavator Index. Nevertheless, the continuing recovery momentum suggests a healthy rebound in logistics and business activities across the nation.

Offline Consumption Resumes at the Start of the New Year

After the long-awaited lifting of zero-Covid measures, the offline restaurant and catering index turned upward in December 2022. Following the 2023 Chinese New Year, the index surged 24% year-on-year in the week ending on February 12, 2023, reaching its highest level since June 2021.

The index, which is published weekly by BigOne Lab for its clients, tracks the revenue of offline catering stores nationwide. It has shown a high historical correlation with the Consumer Retail Revenue (Catering) published by the National Bureau of Statistics and serves as a reliable leading indicator for overall offline consumption activity in China

Overall recruitment increased moderately in February; manufacturing shows signs of recovery